9to5.com: Analysts say Apple’s Corning investment signals future AR glasses & wi


Analysts say Apple’s Corning investment signals future AR glasses & wireless charging tech

This week, Apple announced that it would be investing $200 million in glass supplier Corning as part of its new Advanced Manufacturing Fund. While the investment may seem straightforward on the surface, invest in a glass company for screens, analysts believe that it actually goes much deeper than that…

As noted by CNBC, a pair of analysts on Friday expressed that there’s much more to this investment than just display glass. For instance, Oppenheimer analyst Andrew Uerkwitz, who regularly covers Corning, explained that the move away from metal to glass is a must for wireless charging technologies.

Of course, it’s essentially common knowledge at this point that the iPhone 8 will switch to a glass design, but Uerkwitz believes that the Corning investment paves the way for wireless charging:

“Metal can interfere with wireless charging technology,” he told CNBC. “That means you need glass on the back of the phone, but glass that won’t break. Or you need to use ceramics. Corning has a long history of investing in both glass and ceramics.”

Furthermore, Patrick Moorhead of Moor Insights explains that the investment in Corning by Apple is more of a partnership. Moorhead explains that Apple and Corning can work together to create glass that “properly magnifies” the 180-degree augmented reality experience. It’s been reported multiple times in the past that Apple is working on a pair of augmented realty glasses, thus needing a supplier for the glass for this initiative.

“You need specialized glass in the headset, glass that properly magnifies the 180-degree experience of AR. Also, that glass has to be really light. Corning could develop that for Apple.”

Moorhead also notes that with the investment, Apple would be in a position to obtain exclusive rights to the augmented reality-focused glass from Corning.

When announcing the Corning investment, Apple explained that the $200 million would go to “support Corning’s R&D, capital equipment needs, and state-of-the-art glass processing.” Apple and Corning have been partners for 10 years and as Apple looks to grow United States manufacturing, the investment makes sense. But as always, maybe there’s more to the story than what Apple initially led on.

FT : Deutsche Wohnen would not block new bid from rival

Deutsche Wohnen would not block new bid from rival
New CFO says German-listed landlord is open to ‘adequate offer’ from Vonovia

Deutsche Wohnen would not block a bid from its rival, Vonovia, if the price was “adequate”, according to the new chief financial officer of Germany’s second largest listed landlord.

Deutsche Wohnen last year fended off a hostile bid from its larger rival after a bitter struggle, which one person involved described the “most hostile deal in Germany since the Mannesmann-Vodafone takeover battle”.

The takeover would have capped two years of rapid consolidation in German real estate by creating a residential landlord controlling around half a million properties across the country, but was comfortably rejected by Deutsche Wohnen shareholders.

Philip Grosse, a former Credit Suisse banker who became CFO of Deutsche Wohnen last year, said he was sceptical of the merits of further consolidation. But he said that remaining independent was not an “end in itself” and that the company’s management would not stand in the way of an “adequate offer”, were one to materialise.

“If our shareholders were to be made a sensible offer, which was appropriate . . . and which sufficiently reflected the potential of Deutsche Wohnen, you would have a devil of a job to work against it. At the end of the day . . . we are the representatives of the investors, and have to act on their behalf to manage the company. And that of course includes evaluating a potential bid,” he said in an interview with the Financial Times.

Vonovia said: “A deal with Deutsche Wohnen was a topic in 2015 and 2016. This year building new properties is on the agenda.”

Mr Grosse declined to say what an “adequate offer” would be, but said that Deutsche Wohnen had attempted to give investors an idea of what its potential was in a presentation published alongside its third-quarter results.

On this basis, he said, “a value of considerably above €40 [per share]” could be justified. “Of course that is still a long way off. That means the true value lies somewhere between our current valuation and this long-term potential,” he added.

Deutsche Wohnen’s shares closed at €34.05 on Friday, some way above the €25.86 per share implied by Vonovia’s cash-and-stock bid in October 2015, which valued Deutsche Wohnen’s equity at €9.92bn.

Still, Mr Grosse said that he saw little justification for further big transactions in the German real estate sector. “[In residential real estate] the topic of scale is a topic of concentration. If you have concentrated portfolios, then you can run them efficiently. But scale is not an end in itself,” he said.

“If you look at the companies that have critical mass, then in my opinion it is very hard to argue that there are economies of scale and cost synergies, because they just aren’t there. And I think that is one reason why [Vonovia’s bid] failed, because many investors agreed. In that context, I would put a question mark next to the point of further consolidation.”

For the rest of the year, Mr Grosse said his priority was to focus on “internal growth”. The company will invest in both its existing portfolio of properties, as well as in building new properties on land it already owns.

FT : Crypto currency offerings spur speculation frenzy

Crypto currency offerings spur speculation frenzy
The latest online investing craze has shades of dotcom exuberance

Most organisations have their share of IT workers who slip under the radar. But what is that quiet tech guy really up to when he should be fixing the server?

He might be pursuing a new career, speculating in crypto currencies. In virtual terms at least, he could soon be earning 20 times his annual salary as he joins the latest online investing craze that has shades of dotcom exuberance.

Using digital money loaned on an online exchange, IT staff at mainly financial services companies are betting on “alt-coins” during working hours.

An investment of just a few thousand dollars a month ago in a newly fashionable currency called Muse is now worth close to $500,000. Last week alone the price rose 278 per cent. At the current trajectory, the IT guy will be a dollar-millionaire by Thursday.

Except these are not real-world dollars. This is virtual money, one of the many variants on bitcoin — the original crypto currency that has been around for more than eight years. But there is a speculative frenzy for a new line of investment in the crypto market through initial coin offerings (ICOs).

Initial coin offerings appeal to people who have a lot less competence to evaluate what they’re investing in
Aping the real-world process of floating a company on a stock market, this crypto version involves a group publishing a business plan — commonly known as a white paper — and then promoting the sale to speculators through internet forums. The ICOs raise money in existing crypto currencies, mostly bitcoin and another popular token called Ether.

Many of the more than 830 so-called alt-coins now on the market are bitcoin copies in their own right, others are simply contracts that sit embedded in other cryptocurrency protocols such as Ethereum — a platform that mimics bitcoin’s blockchain technology but adds a smart contract feature.

The bitcoin copies are mineable — which means the number of coins in circulation expands — whereas the contracts tend to be non-mineable, with a capped number of coins in circulation.


“The ICO appeals to people who have a lot less competence to evaluate what they’re investing in,” said Jorge Stolfi, a computer science professor at the State University of Campinas in Brazil, who made a prominent case to the Securities Exchange Commission about the dangers of bitcoin last year.

The first example of this was the Ethereum platform itself, which launched in 2014 with Ether tokens. It initially raised $18bn at $0.40 per token: the tokens are now valued at $92 apiece.

While close to $400m was raised through ICOs last year — and $1.2bn in total — in recent weeks there has been an explosion of new issues. These include Zrcoin, which claims to base its value on cubic zirconia, and Voise, a “decentralised music platform”.

The total market capitalisation of all alt-coins burst through $50bn last week. Bitcoin itself has almost doubled in price since March, but some alt-coins have jumped four or fivefold in the past week alone.

“The applicable crowd psychology textbook here is Extraordinary Popular Delusions and the Madness of Crowds,” said Richard Gerard, author of an upcoming analysis of the industry called Attack of the 50-foot Blockchain.

Whether the faceless IT guy cited above will ever manage to turn his Muse into real-world cash is now a burning question.

In recent weeks crypto traders have been hit by a sudden inability to withdraw dollars after a crackdown by numerous banks previously used to access the real-world payments system. Technical limitations associated with the bitcoin platform have also slowed trade settlements, making the crypto currency unusable for day-to-day transactions.

“It’s a real concern, and we’ve started to use Ether to move money around a lot more now as it will actually be there when you need it,” said one specialist OTC crypto-currency trader.

The delays have had the most impact on bitcoin’s primary use — servicing the dark markets often used by drug dealers. One of them, AlphaBay, recently announced it was accepting Ether.

Locked in the market and stuck with no immediate use for their alt-coins and tokens, many speculators have been happy to chase the ICO fad. This month TokenCard, a company claiming to have a blockchain development called New Alchemy, was able to boast of raising $16m in three minutes.

The prospect of regulatory intervention is not concerning all investors. Many insist they are dealing in a utility, not buying an interest in a company, and so should remain out of regulatory reach.

“It’s very hard to say if they should be regulated or not. It really depends on the nature of the rights and features of the particular token or coin. Or the grants to the holder,” said David Shearer, a partner at Norton Rose Fulbright. While some token sales grant rights similar to holding equity in a company, others offer less rights.

An ICO for an artificial-intelligence-powered investment fund called Beth promises holders the right to receive 60 per cent of the venture’s quarterly profits while reinvesting a further 25 per cent in its portfolio.


The phenomenon is reminiscent of the early days of the still-unregulated eurobond markets, which mushroomed in size in the 1960s and 1970s and became an important source of alternative dollar funding for corporations frozen out because of stricter money controls.

In the style of penny stocks, for every successful token issued there are many more that fail. With ICOs, uncertainty over exactly what it is you are buying adds to the risk.

“People are willing to spend on something, but they own nothing. It’s a promise from a development team which may or may not be useful to people in the market” said Arthur Hayes, a trader for crypto-currency derivative exchange BitMex. “I think it’s interesting that people can raise $10m in minutes based on a dream.”

FT : Bitcoin’s surge fuels fears of asset bubble

Bitcoin’s surge fuels fears of asset bubble
Value of unregulated crypto currencies bursts through $50bn


High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our T&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights.
https://www.ft.com/content/ce3ef54e-371b-11e7-bce4-9023f8c0fd2e

Sky-high valuations for bitcoin have helped the value of crypto currencies burst through $50bn, raising fears of an asset bubble in the unregulated market.

A growing number of alternative digital currencies — or “alt-coins” — is feeding the speculative frenzy with values in some rocketing as much as 500 per cent in the past week. A sharp spike in the price of bitcoin, which has risen 55 per cent this month and is worth more than gold, pushed it past $1,900 on the Bitfinex exchange on Friday.

The speculation has benefited anonymous payment systems, which are being used by cyber criminals executing widescale attacks such as the “ransomware” hack that spread across the world on Friday.

Aside from bitcoin, there are more than 830 alt-coins ranging from Litecoin, a challenger to bitcoin, to MiketheMug, a coin that promises to make weekly payouts to holders.

An increase in initial coin offerings (ICOs) — unregulated issuances of crypto coins where investors can raise money in bitcoin or other crypto currencies — is fuelling the market and drawing attention from lawyers and financial professionals.

Many fear ICOs, which are trying to market themselves as an alternative to venture capitalists as a way of raising cash for businesses, breach existing securities law.

“An ICO issues crypto tokens rather than stocks and bonds, but that’s irrelevant to the substance of the activity, which is raising capital from the general public,” said Ajit Tripathi, a director in fintech at PwC. “Capital raising activities need to be regulated to protect investors . . . The question is how sophisticated are these investors?”

Regulators, who in many cases are still catching up with how to deal with bitcoin, are only just becoming aware of this spin-off sector.

Japan moved to tighten regulation of bitcoin trading and dealing only last month. The move forced bitcoin exchanges to register with the state and to comply with know-your-customer and anti-money-laundering regulations, adding costs to their business.

Observers say many individuals are trading alt-coins from corporate IT departments, concentrated in the financial sector and falling under the radar of senior executives. Many are sitting on virtual fortunes, but are unable to liquidate their cash as banks clamp down on measures to avoid money laundering.

“Systems are being used here by employees to increase their own individual wealth. In the process, corporate systems are coming into contact with the fringes of the criminal world,” said Brian Lord, former deputy director for intelligence and cyber operations at GCHQ, the UK’s electronic surveillance agency .

Now head of cyber practice at security group PGI, he added that it was likely very few companies had governance in place regarding crypto currency being traded on their systems.

ICOs, or “token sales”, are also starting to attract venture capitalists such as billionaire and early bitcoin supporter Tim Draper, who announced plans to invest in the highly anticipated launch of Tezos this month. The token is expected to garner big support from the sector’s many unregulated exchanges, many of whom have the capacity to make or break a new coin.

“We are just looking at whether they are going to be popular, they are selling you a dream. The dream is either going to happen or not and that’s why they are exciting for people,” said Arthur Hayes, a trader at Bitmex, a crypto derivatives exchange. “That tension is great for an exchange.”

Other traders were more cautious about the market’s potential. “Is it sustainable? Absolutely not,” said one trader at a dealing venue. “But while it’s happening, it’s happening. The biggest risk is that the SEC steps in.”

>>> Atlantia and Abertis look to announce merger deal tomorrow - report (transla

Atlantia and Abertis look to announce merger deal tomorrow - report (translated)

Merger talks between Atlantia [BIT:ATL] and Abertis [BME:ABE] have been continuing over the weekend with a view to closing a deal by this evening and announcing a deal tomorrow 15 May, Italian-language daily Il Sole 24 Ore reported. The report cited rumours noting that the public offer will be 70% cash and 30% shares and is likely to be priced at EUR 16- EUR 17 a share.
Atlantia is taking out financing of EUR 11.5bn to fund the public offer, as previously reported.

>>> GlaxoSmithKline preps shareholders for buyout of 36.5% Novartis stake in GSK

GlaxoSmithKline preps shareholders for buyout of 36.5% Novartis stake in GSK Consumer Healthcare - report

GlaxoSmithKline [LON:GSK] has been preparing its shareholders for a buyout of the 36.5% stake in GSK Consumer Healthcare owned by its Swiss joint venture partner Novartis [VTX:NOVN], The Sunday Times reported.
An option for Novartis to sell its interest in the over-the-counter drug JV back to GSK will come into effect in March next year and major GSK investors say they are being readied to expect such a transaction, for which GSK has set aside GBP 8bn (USD 10bn) in its accounts.
One unidentified GSK shareholder quoted in the piece said the company has always been clear it wants to owns the consumer JV and will make its move at the apposite time.
Recent market chatter has speculated that Novartis may utilise the proceeds to try and merge with UK-based biopharma group AstraZeneca [LON:AZN], the report said.
GSK currently has a market capitalisation of just under GBP 82bn, the item noted.
The original report appeared in The Sunday Times, Business & Money section, page 1

>>> Barrons weekend summary

Barrons weekend summary: positive on ADI, AL 

* Cover story: Europe has seen its share of political and banking crises, but the situation seems to be changing; "Given attractive valuations, diminished political risk, low interest rates, and a pickup in global growth, international markets, and Europe particular, could finally start to outperform." 

* Features: 1) It may be time for investors to buy emerging markets, which are trading at a hefty discount to U.S., European, and Japanese shares; China, South Korea, India, Peru, and Greece are among investors' favored destinations now; 2) A look at the picks and pans of investors who attended the annual Sohn Investment Conference (short: CLB, SPY, FTR, U.K. government bonds; long: HHC, EEM, CTL, DHXM, ISBC, UniCredit, TSLA 2022 convertible bonds, UAL, DXC, FMC, Q); 3) Positive on ADI: Company may lose share in iPhone screen chips, but it's flourishing in chips for autos and other sectors where it has more exposure, and shares could return 20% or more this year; 4) Positive on AL: A long-term travel boom has helped the airplane leasing company, but despite some concerns about its debt as interest rates rise, shares are modestly priced and have 30% upside.

* Tech Trader: Under chief Satya Nadella, MSFT has become a so-called cloud company, but because it combines new and old products on its income statement, cloud-related accounting becomes impenetrable. 

* Trader: Some earnings reports suggest that the U.S. economy may be stronger than it looks; GS's Robert Boroujerdi is screening for stocks where estimates have moved higher but multiples haven't followed, such as CAT, STZ, CNK, and MA; Barron's suggests staying away from RH until the company can prove it has put its problems behind it and can justify its valuation. 

* Interview: Columbia professor Bruce Greenwald has trained a generation of value investors, and talks to Barron's about the flaws in discounted-cash-flow valuations, globalization, and other topics. 

* Profile: Nick Clay, manager of the Dreyfus Global Equity Income fund, prefers stable, cash-rich companies trading at attractive valuations (top 10 holdings: MSFT, RAI, CSCO, PG, PM, DEO, NVS, UL, CA, MRK). 

* Small Caps: Positive on HMHC: Publisher had a hard year in 2016, but after cutting costs and investing in its business, a rebound appears to be under way and shares could start moving up. 

* Follow-Up: Cautious on WFM: Investors who bought shares based on Barron's recommendation last year have seen upside only since Jana Partners took a stake this spring, and that won't likely create much momentum; +/- SNAP: Shares still aren't a bargain even after falling by 17% last week, while cash flow figures overstate the company's financial health by excluding hefty stock-based compensation. 

* European Trader: "France's presidential election reinforced a growing belief that Europe's populist tide has been blocked, but the market's muted performance last week suggests that other issues might still be troubling investors." 

* Asian Trader: Positive on JD: Chinese e-commerce major lags rival BABA, but as everyday people in China become wealthier, they're replacing a wider range of goods, and avoiding Alibaba over concern about counterfeits.

* Emerging Markets: Positive on PBR: "After a solid first-quarter profit, the Brazilian energy giant looks ready to climb by 20% or more," and will sell off assets to ease its debt burden. 

* Commodities: Recent U.S. government projections about corn, which predict a decline in production this coming season, offer another reason for the grain to move higher. 

* Streetwise: The increase in AAPL's market value in 2017 has surpassed the entire market cap of DIS, KO, C, two SLB's, or seven APC's.

>>> Comments from G7 officials - US Treasury Sec Mnuchin: agreed to keep cyberse

Comments from G7 officials 
- US Treasury Sec Mnuchin: agreed to keep cybersecurity on the G7 agenda after Friday attacks 
- Working closely with Congress on tax reform and will try to pass it as quickly as possible
- Told G7 that the US wants fair and balanced trade
- Preliminary talks with Mexico and Canada on NAFTA have been productive

- ECB's Visco (Italy): G7 discussed Friday's cyberattack but do not know who is responsible 
- The economic expansion continues, it is strengthening but is still considered modest and faces various risks
- No one flagged possible tensions in Italy ahead of new elections in 2018; G7 did not discuss the problems of Italian banks

- Italy Fin Min Padoan: G7 did not discuss protectionism, but fragmentation does not help anyone

- German Fin Min Schaeuble: feeling more confident that euro zone members will come up with solution to dispute of reforms and debt by the next Euro Group meeting

ECB’s Weidmann (Germany): The strengthening economic development in the euro zone and the robust outlook make monetary policy normalization conceivable
- The election victory of Macron in France gives a chance that the euro zone economy gets an additional momentum